| There is no doubt that the market for houses | | | | your mortgage lender.Step 5: Make an offerOnce |
| has been on fire recently. More and more people | | | | you have found a home that meets your needs, |
| are taking advantage of low interest rates and | | | | it is time to make an offer on the property. You |
| easy mortgage loan terms to go from being | | | | will already know the most you can spend from |
| renters to being home owners. With so many | | | | the pre-approval process, and you probably will |
| people entering the market, it is inevitable that | | | | have your own ideas on what the property is |
| questions will arise.There are many things to | | | | actually worth. In addition, your real estate agent |
| consider when buying your first home. Some of | | | | can guide you through the negotiation process and |
| the most important steps to buy a house | | | | offer procedures. A copy of your pre-approval |
| are:Step 1: Learning the home buying processStart | | | | letter will be presented as part of the written |
| by learning as much as you can about how the | | | | offer. This will ensure the seller that your offer is |
| home buying and mortgage application process | | | | legitimate.Step 6: Negotiation processIf the seller |
| works. Read as much as you can about buying a | | | | accepts your first offer, congratulations. Your |
| home. Check out the many books in your local | | | | negotiations are over and you're ready to start |
| library that offer hints to first time home buyers. | | | | preparing for your move. More likely, however, is |
| Read financial web sites on the internet for tips | | | | that the seller will come back with a counter-offer. |
| for first time home buyers. You may even want | | | | This negotiation process can go on for a short or |
| to sign up for a class aimed at first time | | | | long amount of time, depending on factors like the |
| homeowners. Many towns and cities offer these | | | | motivation of the seller, the local real estate |
| kinds of classes, and they can be a great source | | | | market, and a host of other factors. The real |
| of information for the buyer looking for his or her | | | | estate agent will be a good guide through the |
| first home.Step 2: Find out the pre-qualified price | | | | negotiation process. After all, he or she will have |
| rangeIt is important to find out how much you | | | | been through this process many times |
| can borrow before you start looking for a home. | | | | before.Step 7: Provide copy of Purchase and Sale |
| Talk with several mortgage lenders in your area | | | | Agreement to mortgage brokerAfter the |
| and get pre-qualified for a particular price range. | | | | negotiation process has been completed, you will |
| The mortgage lender will be able to help you | | | | need to present your mortgage broker with a |
| determine how much you can borrow based on | | | | copy of the Purchase and Sale Agreement for |
| your annual income. In general, mortgage lenders | | | | the home.Step 8: Work to close the mortgage |
| recommend that all home related expenses, | | | | loanAfter presenting the Purchase and Sales |
| including the mortgage payment, insurance | | | | Agreement, you will need to work with the |
| premiums and real estate taxes, do not exceed | | | | mortgage broker to ensure you meet all the |
| 28% of your monthly income.Step 3: Get | | | | conditions required for the closing of the |
| Pre-approved for mortgage loanThe next step is | | | | mortgage loan.Step 9: ome inspection prior |
| to get pre-approved for mortgage financing. This | | | | closingPrior to closing, you will want to make sure |
| is similar to getting pre-qualified for a price range, | | | | to have a thorough home inspection performed |
| but it is a more formal process. You will need to | | | | by a qualified and certified home inspector. A |
| supply proof of your income for the pre-approval | | | | home inspection will protect you from flaws in the |
| process to move forward. Most lenders will want | | | | construction and condition of the home that are |
| to see income tax returns from the past two | | | | not obvious to the naked eye. Home inspections |
| years as proof of the income you are | | | | can uncover things like foundation cracks, termite |
| claiming.Step 4: House huntingAfter you have | | | | infestation and other home quality issues.Step 10: |
| been pre-approved for your mortgage loan, it is | | | | Hand over down paymentAfter the home |
| time to actually start house hunting with a realtor | | | | inspection has been performed and the report has |
| (find out why you need to find a realtor before | | | | come back clean (or all the items uncovered have |
| buying a house?). Your mortgage lender will give | | | | been repaired), it is time for the buyer to actually |
| you a letter stating that you have been | | | | hand over the money for the down payment and |
| pre-approved for a mortgage and the amount | | | | sign the loan documents.Step 11: Collect the house |
| you are authorized to borrow. You will need to | | | | keyAfter the closing of the loan, the fun part of |
| present this letter to the real estate agent when | | | | home buying begins. Your real estate agent will |
| you get started. It is important to get | | | | hand over the keys to your new home and you |
| pre-approved for a mortgage loan before | | | | can actually move in and enjoy your beautiful new |
| beginning your home search. The real estate | | | | home. Welcome to moving day!Andrew is the |
| agent and real estate company will be much more | | | | web owner of Home Buying Tips: How to buy a |
| willing to work with you if they know you can | | | | house, a website that provides complete guide on |
| afford the home you are looking at. In addition, | | | | home buying, selling house, home mortgage, |
| sellers will take your offer much more seriously if | | | | foreclosure, real estate investment and more. |
| it is accompanied by a pre-approval letter from | | | | |